…composition of these capital flows. Eduardo Olaberría of the OECD has studied the impact of capital inflows, and reported that debt-based flows are more likely to be associated with increases…

…large capital inflows in middle- and high-income countries over the last 35 years. They report that larger inflows are associated with economic booms. The expansions are accompanied by rises in…

…the foreign sector for a loss of jobs should also finger capital flows. The investment of U.S. firms in overseas facilities that then ship their products back to the U.S….

…could upend these predications. A tax on imports or any trade restrictions would deter trade flows. Moreover, those policies combined with higher interest rates are almost guaranteed to appreciate the…

…channels. The Asian financial crisis of 1998 demonstrated the impact of sudden stops, when inflows of foreign capital turn to outflows. The withdrawal forces adjustments in the current account and…

by Joseph Joyce The Rise and Fall of FDI After the global financial crisis, international capital flows contracted, especially bank lending in Europe. Foreign direct investment (FDI) by multinational firms,…

…reflected in part that year’s depressed investment expenditures following tax reform in the U.S. and a return to positive outflows from the U.S. FDI inflows to the G20 nations, on…

by Joseph Joyce Risk and FDI While FDI flows recovered in 2021 from the previous year’s decline, not all countries benefitted from the increase. UNCTAD reported that almost three-quarters of global FDI flows in…

…to countries with similar political alignments. They estimate a model of the impact of geopolitical alignment on FDI flows, and find that geopolitical factors account for part of the shift…

…One that recognizes the hydrological cycle as a global common good: understanding that it connects countries and regions through both the water that we see and atmospheric moisture flows; that…